The demand for plums is highest during summer and lowest during winter. Yet plum prices are normally lower in summer than in winter. Based on this scenario, discuss the following

• Discuss what happens to the supply of plums, from winter to summer, for the equilibrium price to fall.
• Include a generic supply/demand graph that shows the equilibrium point for plums during the summer and the winter.
• Discuss the shape of the production possibility curve if the farmer can only plant plums or peaches on his farm. Give reasons.